Sandfire Resources (SFR) Q3 2026 earnings summary

Executive summary

• Recorded a fatality at Magdalena mine in February 2026, prompting emergency protocols, safety reviews, and ongoing investigations.

• Group copper equivalent production for Q3 FY26 was 34.5kt, with YTD production at 106.5kt, impacted by heavy rainfall, unplanned maintenance at MATSA, and delays at Motheo.

• Motheo achieved record annualized mining and processing rates, with higher grades expected in Q4.

• Remains on track to achieve group copper equivalent production within the lower half of FY 2026 guidance (149,000-165,000 tons).

• Generated record financial outcomes with unaudited group sales revenue of $408 million and underlying EBITDA of $220 million (54% margin), ending with net cash of $76 million.

Financial highlights

• Group sales revenue reached $408 million in Q3 FY26, with underlying EBITDA at $220 million and net cash increasing to $76 million.

• Underlying EBITDA margin was 54%, supported by resilient commodity markets and strong by-product pricing, especially silver.

• MATSA's C1 Unit Cost dropped to $0.29/lb in Q3 FY26, while Motheo's C1 Unit Cost was $0.96/lb; both operations had C1 costs below AUD 1 per pound.

• Motheo paid $26.1 million in tax installments to Botswana authorities.

• Group capital expenditure for Q3 FY26 was $54 million, with $100 million invested at MATSA and $66 million at Motheo YTD.

Outlook and guidance

• Group copper equivalent production expected at the lower half of FY 2026 guidance (149,000-165,000 tons).

• MATSA is forecast to deliver within the lower half of its 91,000-101,000 ton CuEq guidance; Motheo is expected at the bottom of its 58,000-64,000 ton range.

• Motheo's average feed grade expected to rise toward 1.2% copper in Q4.

• Underlying operating unit costs for MATSA and Motheo expected to remain consistent with prior guidance (AUD 86 and AUD 44 per ton, respectively).

• Group capital expenditure guidance reduced by $15 million to $225 million for FY26.